Let's get caught up on what's happening at Theatre 80, the historic East Village property that houses a performance space, the William Barnacle Tavern and Museum of the American Gangster at 78-80 St. Mark's Place between First and Second Avenue. (There are also several apartments here, and Foxface is a retail tenant.)
Owners Lorcan and Genie Otway have been working to prevent Maverick Real Estate Partners — an aggressive mortgage investor — from auctioning off the two buildings that Lorcan's father first purchased in 1964. (The Real Deal first reported on Maverick's hardball move in October.)
In a story published online Thursday, Lorcan told
The New York Times that the theater, museum and tavern were in good financial health until March 2020, when, like other businesses, they were forced to shutter during NY State's PAUSE.
More background from the Times:
Shortly before then, he had taken out a $6.1 million mortgage against the properties to settle an inheritance dispute, pay legal fees and finance needed renovations.
With the pandemic lockdown and a precipitous decline in revenue, that loan went into default and was purchased by Maverick Real Estate Partners about a year ago. The firm, according to court documents, has closed over 130 distressed debt transactions, with a total value of over $300 million.
The Times reported that the original lender later sold the debt to Maverick without Lorcan's knowledge.
Maverick, Otway said, then raised the interest rate to 24 percent, from 10 percent, bringing the roughly $6 million debt to about $8 million.
This past Wednesday, as
Bloomberg Law first reported, the Otways filed for chapter 11 protection in the U.S. Bankruptcy Court in hopes of avoiding foreclosure by Maverick Real Estate Partners. The properties were being marketed for foreclosure sale by Cushman & Wakefield. As
The Wall Street Journal noted, the filing offers "a breathing spell to refinance an $8 million loan."
According to
The Village Sun, Lorcan's plan is to ask Gov. Hochul for a low-interest loan for Theatre 80. Per the
Sun and
CBS 2, he reportedly has support from several local elected officials, including Congresswoman Carolyn Maloney, State Sen. Brad Hoylman, Assemblymember Harvey Epstein, and City Councilmember Carlina Rivera, who told the
Times that "this is a heartbreaking story."
Later this month, John McDonagh is hosting a benefit performance of his show "
Off the Meter," a comedic take on his years as an NYC cab driver. The benefit takes place Jan. 21-23 at Theater 80. Find ticket info at this
link.
You can also support the business by having some food or drink (with more than a dozen varieties of Absinthe!) at the
Willam Barnacle Tavern. They have a nice outdoor space too.
Theatre 80 is a crown jewel in this neighborhood, and in NYC... the kind of place we need to protect and support.
Image via Facebook